ECONOMIC FREEDOM LAW: REDUCING BUREAUCRACY, FOSTERING, AND DEVELOPING LOW-RISK MICRO AND SMALL ENTERPRISES

Authors

  • Leandro da Costa Lopes
  • Henrique Cordeiro Martins
  • Líssia Regina Pereira Toledo

DOI:

https://doi.org/10.63330/sasciencesv6n2-170

Keywords:

Economic Freedom, Entrepreneurship, Institutional Theory, Micro and Small Enterprises

Abstract

This research analyzes the effects of the red-tape reduction measures introduced by the Economic Freedom Law (LLE) on the business environment for low-risk micro and small enterprises (MSEs) in Brazil, examining their influence on the creation, survival, and development of these ventures. A qualitative approach was adopted, involving interviews with local business owners in Maranhão. The analysis was structured using a correlation matrix linking specific objectives, variables, and indicators. The data revealed significant growth in the establishment of low-risk MSEs following the enactment of the LLE. However, while the interviews showed favorable perceptions regarding the waiver of operating permits, flexible business hours, and the tacit approval of public acts, municipal bureaucratic hurdles and cultural resistance persist. Furthermore, although business owners recognize the benefits of reduced red tape, they highlight issues regarding the interoperability of government entities in implementing the LLE and difficulties related to municipal oversight. Theoretically, the study correlates classical concepts of economic freedom with the contemporary Brazilian context, filling a gap in the still-nascent national literature. The LLE has contributed to a more favorable environment for low-risk entrepreneurship, yet institutional and cultural challenges remain to be overcome.

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Published

2026-09-03

How to Cite

Lopes, L. da C. ., Martins, H. C. ., & Toledo, L. R. P. . (2026). ECONOMIC FREEDOM LAW: REDUCING BUREAUCRACY, FOSTERING, AND DEVELOPING LOW-RISK MICRO AND SMALL ENTERPRISES. South American Sciences, 6(2), e26396. https://doi.org/10.63330/sasciencesv6n2-170